This week, Joe Biden will be sworn in as the 46th President of the United States. Based upon the list of priorities communicated so far, the administration appears focused on ramping up vaccine distribution and economic relief in his first few days in office. Mr. Biden is requesting that Congress approve $1.9 trillion in relief, which includes:
On balance, aid to households comprises roughly half of the plan’s cost while much of the rest is aimed at vaccine distribution as well as supporting state and local governments who have seen their tax receipts decline.
The new administration faces challenges on several fronts as it settles into office. Most pressing, Covid-19 cases, hospitalizations, and deaths are near all-time highs in the US.
Source: Centers for Disease Control and Prevention, Johns Hopkins CSSE, J.P. Morgan Asset Management.
Guide to the Markets – U.S. Data are as of January 12, 2021.
Key Economic Releases This Week
|Thursday, Jan. 21||Building Permits (annual rate)||December||1.60 million||1.64 million|
|Thursday, Jan. 21||Housing Starts (annual rate)||December||1.56 million||1.55 million|
|Friday, Jan. 22||Existing Home Sales (annual rate)||December||6.55 million||6.69 million|
|Friday, Jan. 22||Markit US Manufacturing PMI (preliminary)||January||56.5||57.1|
|Friday, Jan. 22||Markit US Services PMI (preliminary)||January||53.4||54.8|
Asset Class Returns
|Category||Representative Index||YTD 2021||Full Year 2020|
|Global Equity||MSCI All-Country||1.5%||16.3%|
|US Large Cap Equity||S&P 500||0.4%||18.4%|
|US Small Cap Equity||Russell 2000||7.5%||20.0%|
|Foreign Developed Equity||MSCI EAFE||1.8%||7.8%|
|Emerging Market Equity||MSCI Emerging Markets||5.2%||18.3%|
|US High Yield Fixed Income||ICE BofAML High Yield||0.4%||6.2%|
|US Fixed Income||Barclays Aggregate Bond||-0.8%||7.5%|
|Cash Equivalents||ICE BofAML 0-3 Mo Deposit||0.0%||0.5%|
As of January 15, 2021
Prices & Interest Rates
|Representative Index||Current||Year-End 2020|
|Dow Jones Industrial Avg.||30,814||30,497|
|Crude Oil (US WTI)||$52.33||$48.52|
|2 Year Treasury||0.13%||0.13%|
|10 Year Treasury||1.11%||0.93%|
|30 Year Treasury||1.85%||1.65%|
Source: Bloomberg, US Treasury
As of January 15, 2021
Past performance may not be representative of future results. All investments are subject to loss. Forecasts regarding the market or economy are subject to a wide range of possible outcomes. The views presented in this market update may prove to be inaccurate for a variety of factors. These views are as of the date listed above and are subject to change based on changes in fundamental economic or market-related data. Please contact your Financial Advisor in order to complete an updated risk assessment to ensure that your investment allocation is appropriate.